BILL NUMBER: AB 1383 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 18, 2005
AMENDED IN ASSEMBLY APRIL 6, 2005
INTRODUCED BY Assembly Member Pavley
( Coauthors: Assembly Members
Hancock, Mullin, Salinas, and
Torrico )
FEBRUARY 22, 2005
An act to add and repeal Chapter 5.6 (commencing with Section
25460) of Division 15 of the Public Resources Code, relating to
energy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1383, as amended, Pavley. Solar energy: Low-Income Housing
Development Revolving Loan Program.
(1) Existing law establishes various revolving loan programs to
provide loans for specified purposes, including recycling market
development and renewable energy resources.
This bill would establish, until January 1, 2016, the Low-income
Housing Development Revolving Loan Program to subsidize the financing
gap for distributed solar energy systems, as defined, in low-income
housing units. The bill would create the Low-income Housing
Development Revolving Loan Fund (the fund) for the purpose of
providing loans for program purposes.
The bill would require the State Energy Resources Conservation and
Development Commission to take various actions to establish the
program , including entering into a memorandum of agreement
with a state agency to administer the program upon the
appropriation of money in the fund for that purpose in the annual
Budget Act.
(2) The bill would require the California Public Utilities
Commission (PUC), in consultation with the commission, on or before
July 1, 2006, to issue an order initiating an investigation and
opening a ratemaking proceeding, or expanding the scope of an
existing proceeding, to adopt and implement a program to invest in
low-income residential housing solar energy systems pursuant to the
program, as provided.
The bill would require the commission to identify funds that are
currently available in the Renewable Resource Trust Funds for the
program if funds are not made available through the PUC ratemaking
proceeding.
The bill would require the commission , if funds are
available for this purpose under provisions of this bill,
to ensure that the proportional program support for the
installation of solar energy systems on new construction and
rehabilitation of affordable housing units does not exceed a certain
percentage of the overall program funds, as specified.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) California has a pressing need to procure a steady supply of
affordable and reliable peak electricity for affordable housing
units.
(b) Solar generated electricity is uniquely suited to California's
needs because it produces electricity when California needs it most,
during the peak demand hours in summer afternoons when the sun is
brightest and air conditioners are running at capacity.
(c) Procuring solar electric generation capacity to meet peak
electricity demand increases system reliability and decreases
California's dependence on unstable fossil fuel supplies.
(d) Solar generated electricity diversifies California's energy
portfolio. California currently relies on natural gas for the bulk of
its electricity generation needs. Increasing energy demands place
increasing pressure on limited natural gas supplies and threaten to
raise costs.
(e) More than Roughly 20,000
affordable housing units will be built annually in California in the
coming years, challenging energy reliability and affordability for
those residents who can least afford inflated energy bills.
(f) Investing in low-income housing solar electricity generation
installations today will lower the cost of solar generated
electricity for all Californians in the future. In 10 years, solar
peak electric generation can be procured without the need for
rebates.
(g) Increasing California's solar electricity generation market
will also bring additional manufacturing, installation, and sales
jobs to the state at a higher rate than most conventional energy
production sources.
(h) Funding the Low-Income Housing Development Revolving Loan
Program established pursuant to Chapter 5.6 (commencing with Section
25460) of Division 15 of the Public Resources Code (hereafter the
loan program) is a cost-effective investment by ratepayers in peak
electricity generation capacity, because as a result of the program
ratepayers will recoup the cost of their investment through lower
rates by avoiding purchases of electricity at peak rates, with
additional system reliability and pollution reduction benefits.
(i) The Public Utilities Commission has regulatory authority over
public utilities, including electrical corporations, and existing law
authorizes the commission to establish rules for all public
utilities, subject to control by the Legislature. In addition, the
commission can require an electric or gas corporation to perform home
weatherization services, as defined, for low-income customers, as
determined by the commission.
(j) The loan program would further establish, increase, and modify
incentives and provide financing mechanisms for energy efficiency
and photovoltaic capabilities for subsidized and affordable housing,
and establish "zero energy homes" as a goal for low-income and
affordable housing residents.
(k) Solar energy systems provide substantial energy reliability
and pollution reduction benefits. Solar energy systems also diversify
our energy supply and thereby reduce our dependence on imported
fossil fuels.
SEC. 2. Chapter 5.6 (commencing with Section 25460) is added to
Division 15 of the Public Resources Code, to read:
CHAPTER 5.6. Low-income Housing Development Revolving Loan
Program
25460. As used in this chapter, the following terms have the
following meanings:
(a) "Agency" means the state agency with which the commission
enters into a memorandum of understanding to administer the program.
(b)
(a) "Fund" means the Low-income Housing
Development Revolving Loan Fund created by Section 25462.
(c)
(b) "Low-income residential housing" means
affordable residential housing units that are defined in Section
50052.5 or 50053 of, or are undertaken, constructed, or operated
pursuant to Chapter 3.6 (commencing with Section 50199.4) of Part 1
of Division 31 of, the Health and Safety Code.
(d)
(c) "Program" means the Low-Income Housing
Development Revolving Loan Program created by Section 25461.
(e)
(d) "Solar energy system" means a
photovoltaic solar collector or other photovoltaic solar energy
device that has a primary purpose of providing for the collection and
distribution of solar energy for the generation of electricity, and
that produces at least 1 kW alternating current rated peak
electricity.
25461. The Low-Income Housing Development Revolving Loan Program
is hereby established. The purpose of the program is to provide a
source of financing not to exceed 75 percent of the total system
cost, for solar energy systems in low-income residential housing
units.
25462. (a) The Low-income Housing Development Revolving Loan
Program Fund is hereby created in the State Treasury for the purpose
of providing loans for purposes of the program.
(b) The commission shall administer the fund.
( c) The commission shall consult with
the California Tax Credit Allocation Committee (TCAC), the California
Housing Finance Agency, and the Department of Housing and Community
Development to develop guidelines for the fund.
(d) The agency
commission may expend the money in the fund to make loans to
local governing bodies, private businesses, and nonprofit entities to
provide funding for solar energy systems in low-income housing
units.
(c) The agency
(e) The commission shall
administer below market rate loans at a rate determined annually by
the agency.
25463. (a) The agency commission
shall establish and collect a fee for each application for a loan
authorized by this section. The application fee shall be set at a
level that is sufficient to fund the agency's
commission's cost of processing applications for loans. In
addition, the agency shall establish a schedule of fees, or points,
for loans that are entered into by the agency, to fund the
agency's commission, to fund the commission's
administration of the program.
(b) The agency commission may expend
money in the fund, including interest earnings on money in the fund,
for the administration of the program, upon the appropriation of
money in the fund for that purpose in the annual Budget Act.
(c) The money from any loan repayments and fees, including, but
not limited to, principal and interest repayments, fees and points,
recovery of collection costs, income earned on any asset recovered
pursuant to a loan default, and money collected through foreclosure
actions, shall be deposited in the fund.
(d) All interest accruing on interest payments from loan
applicants shall be deposited in the fund.
(e) The agency commission may set
aside money in the fund for the purposes of paying costs necessary to
protect the state's position as a lender-creditor. These costs shall
be broadly construed to include, but not be limited to, foreclosure
expenses, auction fees, title searches, appraisals, real estate
brokerage fees, attorney fees, mortgage payments, insurance payments,
utility costs, repair costs, removal and storage costs for
repossessed equipment and inventory, and additional expenditures to
purchase a senior lien in foreclosure or bankruptcy proceedings.
25464. To be eligible for participation in the program, a housing
project must be at least 10 percent or more energy efficient than
required by the current standards specified in the California
Building Standards Code contained in Title 24 of the California Code
of Regulations, or have implemented measures to reduce the energy use
of the building or unit by 10 percent, as calculated pursuant to
Title 24 compliance models. An eligible housing project that exceeds
energy efficiency standards required by Title 24 by more than 10
percent shall receive financing at rate of .25 percent lower for
every 5 percent additional improvement in energy efficiency.
25465. The commission may consult with the California Tax Credit
Allocation Committee (TCAC), the California Housing Finance Agency
and the Department of Housing and Community Development to develop
guidelines for the loan program.
25466. This chapter shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
SEC. 3. (a) Notwithstanding any other law, on or before July 1,
2006, the California Public Utilities Commission (PUC), in
consultation with the State Energy Resources Conservation and
Development Commission, shall issue an order initiating an
investigation and opening a ratemaking proceeding, or expanding the
scope of an existing proceeding, for the purpose of adopting and
implementing a program to invest in low-income residential housing
solar energy systems pursuant to Chapter 5.6 (commencing with Section
25460) of Division 15 of the Public Resources Code.
(b) In the course of that proceeding, the PUC and the State Energy
Resources Conservation and Development Commission shall also
consider and evaluate whether existing solar energy programs are
adequately funded to achieve the goal of placing solar energy systems
on low-income or affordable residential housing units by December
31, 2018.
(c) If funds are not available through a PUC ratemaking
proceeding, the State Energy Resources Conservation and Development
Commission shall identify funds either from those currently available
in the Renewable Resource Trust Fund established by Section 25751 of
the Public Resources Code or in the next available reauthorization
of the fund.
(d) The commission If funds are made
available for this purpose under subdivision (a) or (c), the State
Energy Resources and Conservation and Development Commission
shall ensure proportional program support, not to exceed 10 percent
of the overall program funds, for the installation of solar energy
systems on the new construction and rehabilitation of affordable
housing units, including single and multifamily residential housing.
In addition to the rebate, the The
commission shall also ensure that additional and proportional
resources, not to exceed 5 percent of the overall program funds, are
provided for the unique needs of the subsidized low-income housing
program through a targeted financing mechanism
and support , including a revolving loan fund,
technical assistance, and other needs as identified in
consultation with the California Tax Credit Allocation Committee.